The Greater South Haven Area Chamber of Commerce

2008 Progress About Us Directors and Staff Economic Development Join the Chamber Membership Benefits Strategic Direction

Economic Development

CREATING ENTREPRENEURIAL COMMUNITIES THROUGH BRACE

CEC

Michigan State University’s Creating Entrepreneurial Communities (CEC) Program

In December 2006, the Greater South Haven Area Chamber of Commerce lead an effort tosubmit an application to Michigan State University’s (MSU’s) Entrepreneurial Communities (CEC) Program on behalf of its membership, representative of its service area, and consistent with its mission to support economic growth and opportunities for success.The CEC Program was identified as the first step in mobilizing a regional effort that focused on developing ewas to develop an entrepreneurial environment that embraced cultural, historical, and environmental assets and was well supported by the community. (Refer to Attachment A: CEC Program Support Letters).

Black River Area Center for Entrepreneurs

After being accepted to MSU’s CEC Program, the Greater South Haven Area Team was deployed for training along with eight other hand selected community teams from around the state. The nine CEC Program teams represented a willingness amongst communities to pursue creative avenues to facilitate economic diversification and were chosen based on their readiness to shift away from more traditional economic strategies and to share their experiences as part of the development of best practices. All team members received certification from the RUPRI Center for Rural Entrepreneurship and an eighteen month commitment to MSU’s CEC Program was initiated.

This greater South Haven area initiative was launched in April 2007 after significant planning and in November 2007 the CEC Program at the local level was officially branded the Black River Area Center for Entrepreneurs (BRACE). A core group of dedicated individuals has been meeting monthly (Refer to 6.d., Lead Entities for Creating Entrepreneurial Communities – Black River Area Center for Entrepreneurs) and has defined its scope by developing sub-sector teams and focusing on four key areas: Business; Youth; Arts & Culture; and Agriculture.

Each sub-sector team has formulated goals and objectives under the centralized vision of developing a systematic and supportive approach to small business development. (Refer to Attachment B: Creating Entrepreneurial Communities Program Update Presented at the Edward Lowe Foundation Retreat).

As stage one of our entrepreneurial development efforts, the CEC Program has been a successful platform to create greater awareness about entrepreneurism as an economic engine and a great launching pad for BRACE. A number of program opportunities have been implemented, most notably (1) Summit: 07 – Energizing the Economy through Entrepreneurship and (2) the E-Club.

The CEC Program and Summit: 07 – Energizing the Economy through Entrepreneurship were recently referenced in the Small Business Foundation of Michigan’s 2007: 08 Entrepreneurship Score Card as initiatives underway in Michigan which have the potential to significantly capitalize on and improve the nexus between entrepreneurship and sense of community:

Creating Entrepreneurial Communities (CEC) – Under the leadership of Barbara Fails (Michigan State University, MSU Extension, the Product Center, University Outreach and Engagement), the CEC is a collaboration of partners (Michigan Economic Development Corporation, the Edward Lowe Foundation, Michigan Department of History, Arts and Libraries, Small Business and Technology Development Centers) working together to promote entrepreneurship as a strategy to improve Michigan’s economic future. In November, 2007, CEC collaborated with Rachel M Vochaska, Executive Director, Greater South Haven Area Chamber of Commerce, to host "SUMMIT: 07 - Energizing the Economy through Entrepreneurship." Attendees characterized the SUMMIT: 07 experience as "life changing, engaging, energizing, thought provoking, wonderful, and amazing!
Source: Page 128 Small Business Foundation of Michigan’s 2007: 08 Entrepreneurship Score Card

Most recently, the need for support services in the area of resources and mentoring needed for small business development was witnessed at the February 21, 2008 E-Club meeting where 15 individuals interested in starting a business or already in business met to peer network and gain greater knowledge about financial aspects associated with small business development. Entrepreneur and E-Club member Katie Postema, Owner of Coastal Concierge states:

The rewards of owning and operating a small business are extraordinary; so too are the challenges. I was fortunate to attend the first E-Club meeting. This new series of interactive meetings is designed to provide information about issues faced by area business owners and those considering a venture of their own. E-Club was an opportunity to connect with small business owners, aspiring entrepreneurs and community leaders with the single focus of developing skills for successful businesses. I was energized by the information and left inspired to put thought to action. I cannot wait for the next session.
As CEC-BRACE continues to identify needed resources for the small business sector and develops tools for entrepreneurs as a means of facilitating business success, the leading entities recognize that the lynchpin to a thriving entrepreneurial economy is the capacity to inspire community revitalization by capturing the passion, intelligence, resourcefulness, and dedication of it people and providing free, confidential and professional management advice through Enterprise Facilitation.

As a method of developing grassroots entrepreneurship, Enterprise Facilitation looks beyond the tradition economic development models we already have in place and is deeply rooted in civic engagement, connecting with talented citizens, and imparting social technology - qualities often difficult for economists to measure but integral to the growth and vitality of the rural communities in which we work and live.

READINESS

CEC Data

At the public launch of the CEC Program on April 20, 2007 all attendees participated to a benchmarking survey developed by MSU and deployed via TurningPoint Technology. In brief, the survey revealed:

· Overall on a scale from “not at all” entrepreneurial as (1) to very strongly entrepreneurial as (5), the Black River Area rated an average of 2.15 – a little to somewhat entrepreneurial.

· While most surveyed identified the development of entrepreneurs as important to the future of the community, it was also identified that little is offered in way of programs or information resources for entrepreneurs. Other short comings included services for entrepreneurs like legal, accounting, market research or personnel development.

· Organizational support was also noted to be lacking with no locally based or controlled organization solely focused on improving the community’s entrepreneurial climate. One of the lowest scores was the lack of a program to identify entrepreneurs in the area. Moreover, the lack of an entrepreneurial development strategy or lending and investing programs hamper entrepreneurial development.

(Refer to Attachment C: Synopsis of Black River Area Entrepreneurial Community Attitudes, May 2007 and Attachment D: Baseline Results from CEC Program Launch - April, 2007)

Michigan’s Entrepreneurial Score Card

Regarding overall performance, the findings of this year’s Score Card differ little from those of the last two years. In fact, this year the Score Card indicates continued slippage in Entrepreneurial Dynamism and General Business Growth. But, there are several encouraging signs this year:

The performance of the entrepreneurial sector did better than that of the business sector as a whole. While general business growth ranked 50, entrepreneurial change ranked 38. al change improved in rank by ten positions between this year’s and last yreport.

Public policy has begun to reflect the importance of entrepreneurship.

These, along with a host of other factors, are early signs that the state economy is beginning a much needed long-term transformation.
Source: Page 6 Small Business Foundation of Michigan’s 2007 Entrepreneurship Score Card

Numerous communities and organizations have initiatives underway that aim to foster increased entrepreneurship in the state.

CEC-BRACE Successes

CEC-BRACE Successes to date are a prime example of the readiness of our communities to embrace a shift in economic development strategy and engage in a grassroots economic diversification effort:

· Community Buy-In

A consistent level of attendance at BRACE meetings and support for continued programming and development of resources.

· A Local Entrepreneurial Support Organization (ESO) Established

The Greater South Haven Team established as part of the CEC Program and then branded as BRACE has laid the foundation as a local ESO and will continue in the capacity of a Volunteer Resource Board under Enterprise Facilitation.

· Data Has Been Collected

A baseline survey established by MSU has been conducted regarding entrepreneurial perceptions. This same survey will be repeated with the control group in May, 2008 to determine the level of change in perception regarding entrepreneurism as a result of the CEC Program.

The Michigan Entrepreneurial Score Card marks its fourth year in 2008 and provides sound and objective methodology and outcome measurements to highlight trends, correlations, relationships and opportunities as a guide to how the Michigan entrepreneurial economy stacks up relative to other states.

· Promotional and Educational Forums Have Been Held

Summit: 07 - Energizing the Economy through Entrepreneurship attended by entrepreneurs, regional leadership, and state-based Entrepreneurial Support Organizations introduced the concept of Enterprise Facilitation and explored the need for a shift in economic strategy.

· Resources and Tools Are Being Implemented

Entrepreneurial curriculum has been implemented at the Intermediate School District level making small business development education and training available to all of the 11 school districts in Van Buren County. Small business development classes are being held at Lake Michigan College – South Haven Campus as part of the Community Education program. Monthly Entrepreneur Club (E-Club) meetings are hosted bring like-minded people (entrepreneurs) into the room to network, resource share, and peer mentor. An on-line BRACE Resource Directory available through the Greater South Haven Area Chamber of Commerce’s web-site is currently in design and development and will link internet users to a full complement of resources, tools, programming, and assistance.

· State-wide Awareness Is Being Created

A daylong meeting of representatives from various Entrepreneurial Support Organizations and teams participating in Michigan State University’s Creating Entrepreneurial Communities (CEC) Program met on January 15, 2008 at Lake Michigan College in South Haven. Reports were heard from CEC Program teams and representatives of the Small Business Association of Michigan, Michigan Economic Development Corporation, Small Business and Technology Development Center, MSU Product Center and MSU Extension, Edward Lowe Foundation, Rural Partners, Starting Block, Northern Initiatives, and Sirolli Institute.

Representatives of Tuscola County also gave a detailed report of how the footprint of the Sirolli method of “Enterprise Facilitation” has been laid down in the county to foster economic growth through entrepreneurial development.

This was the first forum of its kind with participants agreeing to continue to meeting to develop synergies and programs aimed at better serving small business start-ups and existing small businesses (refer to Attachment E: Michigan Entrepreneurial Support Organization Forum - Organizations Cooperating To Stimulate Economic Growth Through Entrepreneurial Development.)

· Discovery

Due to our CEC-BRACE efforts we have discovered that a consistent level of support exits toward the CEC-BRACE Program concept, entrepreneurs are very willing to share what their needs are and what their successes have been, however, there exists a general lack of awareness about the services and products that are available to assist with small business development, and the region is mobilized and ready to move forward by embracing a sustainable economic model such as Enterprise Facilitation.

Availability of Services and Resources

Like many communities, we have identified that there are a number of services and resources available for small business development. However, currently there exists no central clearing house or connecting point by which an entrepreneur is made aware of this full array of business development assets as listed below:

· Data, information, and guidance available through the Greater South Haven Area Chamber of Commerce;

· Certificate and degree programs, and non-credit community workshops and seminars available through Lake Michigan College – South Haven Campus;

· Coaching through Michigan State University Extension;

· City of South Haven ’s dedicated, full-time Economic Development Liaison position which provides assistance to the region;

· Economic development services, incentives and tax abatements available through other local governmental authorities;

· Workforce development initiatives through Michigan Works! Berrien, Cass, and Van Buren County;

· Counseling services through the Small Business and Technology Development Center;

· Trends and reports produced by the W.E. Upjohn Institute for Employment Research; and

· Technical assistance from the Michigan Economic Development Corporation.

Under the Sirolli model of Enterprise Facilitation, an enterprise facilitator would connect the dots and act as a conduit between resources, services, and entrepreneurs, and will strengthen our region’s ability to redefine its economic development strategy.

Other Strengths and Assets

An economic analysis of the greater South Haven area conducted by the W.E. Upjohn Institute for Employment Research has identified the following strengths associated with the greater South Haven Area our area:

· Land for development exists and is available;

· The lakeshore and Black River are unique resources;

· There is well established infrastructure including education, healthcare, and utilities;

· The region has an active citizenry and good availability of retired talent; and

· The area benefits from its geographic location relative to major business markets including Chicago, Detroit, Fort Wayne, Grand Rapids, Kalamazoo, and South Bend.

We have identified that the following assets position us well in re-defining our regional economic climate:

· A vibrant agricultural community;

· A robust tourism industry;

· New opportunities for training through Lake Michigan College – South Haven;

· A commitment toward regional collaboration; and

· An eagerness for economic growth and development.

Our combined strengths and assets will likely position us well in our efforts to reposition our economic climate and ability to diversify our economy through entrepreneurism.